Family Dollar Stores Inc (FDO): Earnings, an Early Look

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Perhaps most troubling for Family Dollar are the moves that its competitors are making. Dollar General Corp. (NYSE:DG) has done its best to hold off rising competition by aggressively expanding, with plans to open 635 new stores this year. The move could hurt short-term margins, but it throws down the gauntlet for Family Dollar to keep up the pace. Meanwhile, Dollar Tree, Inc. (NASDAQ:DLTR) reported surprisingly strong results in its most recent quarter as its cost-cutting bore fruit for investors.

In Family Dollar’s quarterly report, watch for the company to address how it plans to respond to Dollar General’s aggressive expansion plans. In this increasingly dog-eat-dog industry, Family Dollar can’t afford to let its rivals get too far ahead if it wants to retain its leadership position among deep discounters.

The article Family Dollar Earnings: An Early Look originally appeared on Fool.com.

Fool contributor Dan Caplinger has no position in any stocks mentioned, and neither does The Motley Fool. You can follow Dan on Twitter @DanCaplinger.

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